Ainos, Inc. Q3 FY25 Results

Ainos continued to execute with focus as we build the foundation for the 2026 commercial scale-up of our core scent-digitization technology platform, AI Nose. This quarter, we further strengthened our market position by adding new strategic partners in the semiconductor and industrial edge AI sectors, expanding our network of major industrial collaborators to six and advancing the buildout of a comprehensive SmellTech ecosystem. Together, these collaborations extend AI Nose into high-value applications in semiconductors, industrial automation and robotics—accelerating adoption through broader sales and service channels and validating digital olfaction as a transformative capability for intelligent sensing. We are delivering on our commitments. AI Nose pilots are scaling rapidly, setting the stage for wider commercial rollouts in 2026. Market interest has also been reinforced by strong visibility at major industrial exhibitions, where Ainos showcased the world’s first commercial AI olfactory system that transforms scent into a machine-readable data layer for industrial and healthcare applications. AI is redefining the electronic-nose market by strengthening odor analysis and identification, underscoring the strategic soundness of our focus on AI-driven SmellTech. According to third-party research, the global electronic-nose market is projected to grow from approximately $45 billion in 2025 to more than $130 billion by 2034, representing a 12.7% compound annual growth rate. Asia Pacific is expected to lead the next growth wave—precisely where Ainos is building scale. Our proprietary Smell Language Model (SLM) and over a decade of data experience give us a powerful competitive edge. As a U.S.-incorporated company, I believe our strong momentum in Asia is strategically positioning us for the next phase of global expansion — with the U.S. market firmly in our sights as the next major growth frontier. Through our expanding SmellTech-as-a-Service model, Ainos is on a path of turning years of research and development into recurring, data-driven value. Our technology is being deployed across factories and robots, delivering real-time AI-powered scent analytics that enhance safety, efficiency, and environmental awareness. With strong execution, a defensible intellectual-property moat, and growing commercial traction, Ainos is heading into 2026 with increasing momentum and long-term growth potential. We are proud to advance the development of AI-powered digital olfaction, shaping a future where machines can potentially perceive the world around them.

Throughout the third quarter, we maintained a disciplined financial approach, emphasizing prudent, cash-based expense management while continuing to support our strategic priorities for scaling adoption of the SmellTech platform. Selling, general, and administrative expenses declined 22% year over year, contributing to an 8% reduction in total operating expenses. Our focus on operational efficiency and measured investment enabled us to sustain momentum in AI Nose commercialization, expand our partner ecosystem, and advance our clinical programs, all while preserving balance sheet flexibility. With a lean cost structure and effective capital allocation, Ainos remains well positioned to execute its 2026 scale-up roadmap and deliver long-term value to shareholders.